Have you considered collaborative working or a merger?
11 Key Steps for Trustees, 1 Giant Leap for your Charity: Month 3
Welcome to month 3 of our 2018 guide for Trustees! Have you ever thought that there could be advantages to be gained by your charity from working with another charity? This month we’re looking at what trustees should think about when considering a merger or collaborative working.
Step 3: Collaborative Working and Mergers
Many not for profit organisations are finding increasing pressure on their traditional sources of income. Local authorities are having to find savings in their budgets due to cuts in central government funding and with the current political uncertainty around Brexit, there is no sign of that changing.
Did you know: In 2015-2016, the sector saw 54 merger deals between 116 charitable organisations. This is a very small number when you consider how many charities there are in the UK.
As trustees, you need to be innovative in finding either new sources of income or finding different ways to operate more efficiently. There is potential to find efficiencies by working with other organisations through collaborative working or sometimes a decision to collaborate can lead to a formal merger of two or more charities. However, trustees must also ensure that there are clear benefits to the collaborative working arrangement and that the risks are understood before going ahead.Read month 3: Collaborative working and mergers